Suchergebnisse

This paper aims to analyse the changes in accounting surplus (loss), equity and assets, and liabilities as a result of accounting policy changes from the Australian Accounting Standards (AAS) to the International Financial Reporting Standards (IFRS) in Australian local government entities. Using the reconciliation notes disclosed by 117 local government entities, evidence is provided on the effects of IFRS adoption by identifying the key items that of difference between IFRS and AASB. The results show some differences between two sets of accounts prepared under these different accounting standards. While the average surplus (loss) of local councils has decreased, their equities, assets and liabilities have increased, with no major significant changes in their overall financial position, except for liabilities. These results indicate the possible consequences of the adoption of IFRS by local government entities in other countries on performance indicators who have or are yet to implement these standards.

ABSTRACT: This study contributes to the ongoing debate on whether to allow capitalization of R&D expenditures. Although prior studies suggest that capitalization of R&D expenditures is more value-relevant than immediate expensing, limited evidence is available outside the U.S. on whether R&D capitalization increases the riskiness of future benefits. In contrast to the U.S., where R&D capitalization is not permitted, Australian's GAAP allowed, until 2005, capitalization of R&D expenditure if the derived benefits recovered the cost "beyond reasonable doubt." Using this unique setting, we employ a sample of 912 Australian firm-year observations for 298 firms over the years 1988 to 2000 to examine the association between current R&D expenditure and risk in future earnings, where earnings variability is used as proxy for risk. We find that expensed R&D expenditures generate higher risk in future earnings than current capital expenditures, and that both expensed current R&D expenditures and current capital expenditures generate higher risk in future earnings than do discretionary capitalized R&D expenditures.

This study reports the results of an empirical study that examined the impact of changes in the board of directors on writedowns of non–current assets. Using 337 annual reports of the firms listed on the New Zealand Stock Exchange for 7 years from 1993 to 1999, the results show that changes in the board of directors is a statistically significant determinant of both writedown decision and the dollar amount of writedowns. The results also show that the regression coefficient and the significance level of board restructure are materially higher when changes in chief executive officer are incorporated in the model estimation. Corporate firm size, as measured by total assets at balance date, is found to be another significant determinant. Other corporate attributes such as leverage, operating performance and term borrowings in the subsequent years are not significant factors. However, a firm's growth opportunities provide some support in explaining the dollar amount of writedowns. The results are robust to alternative proxies and the time effect is not evident over the 7–year period.

There are many theories as to what form good-quality parenting should take. Attachment theory emphasises providing a secure base through sensitive responding at times of emotional need. Social learning theory outlines the need for firm limits in addition to the promotion of positive interchanges. These theories are supported by numerous quantitative research studies investigating which parenting styles are associated with better outcomes for children in general and for those with additional needs due to prior abuse or emotional and behavioural difficulties. However, there have been few systematic qualitative studies asking children themselves about their care experiences, particularly with abused or neglected children who are now safe in foster care. Using an adapted version of the Child Attachment Interview, we interviewed 12 children aged 13 to 15 years, who had been taken into care due to abuse and fostered for at least six months, with the aim of exploring their attachment to their birth parents, foster carers and attitudes to different parenting styles in general. Transcripts were analysed using the qualitative technique of Interpretative Phenomenological Analysis. Overall, the abused children spoke more positively of foster care than the care provided by their birth parents. Parenting techniques mentioned in positive terms were a clear disciplinary style, setting firm boundaries, nurturing care, enjoyable time together and mentoring further development. Negative themes included angry or inconsistent disciplinary styles, failure to set appropriate boundaries, rejecting and neglectful behaviour, a lack of joint activities, a chaotic lifestyle and parental illness. This study provides a unique perspective on parenting, as the children studied have experienced both poor parenting and reasonably normal care. The findings are applicable to care provided for fostered children and could be relevant to the upbringing of children in general.

There are many theories as to what form good-quality parenting should take. Attachment theory emphasises providing a secure base through sensitive responding at times of emotional need. Social learning theory outlines the need for firm limits in addition to the promotion of positive interchanges. These theories are supported by numerous quantitative research studies investigating which parenting styles are associated with better outcomes for children in general and for those with additional needs due to prior abuse or emotional and behavioural difficulties. However, there have been few systematic qualitative studies asking children themselves about their care experiences, particularly with abused or neglected children who are now safe in foster care. Using an adapted version of the Child Attachment Interview, we interviewed 12 children aged 13 to 15 years, who had been taken into care due to abuse and fostered for at least six months, with the aim of exploring their attachment to their birth parents, foster carers and attitudes to different parenting styles in general. Transcripts were analysed using the qualitative technique of Interpretative Phenomenological Analysis. Overall, the abused children spoke more positively of foster care than the care provided by their birth parents. Parenting techniques mentioned in positive terms were a clear disciplinary style, setting firm boundaries, nurturing care, enjoyable time together and mentoring further development. Negative themes included angry or inconsistent disciplinary styles, failure to set appropriate boundaries, rejecting and neglectful behaviour, a lack of joint activities, a chaotic lifestyle and parental illness. This study provides a unique perspective on parenting, as the children studied have experienced both poor parenting and reasonably normal care. The findings are applicable to care provided for fostered children and could be relevant to the upbringing of children in general.

PurposeThis study aims to examine whether or not listed companies' disclosure of intellectual capital is value‐relevant in share markets and to assess its moderating role in the value‐relevance of reported earnings and equity following the adoption of international financial reporting standards (IFRS).Design/methodology/approachA measure of intellectual capital disclosure (ICD), based on a content analysis of the text in annual reports sampled from listed companies in Britain, Australia, Hong Kong and Singapore, is incorporated in the models to examine the direct and moderating roles of ICD in a firm's valuation.FindingsThe results reveal that ICD is positively associated with market price (i.e. has value relevance) in companies in two of the four countries and in non‐traditional industries. Further, the incremental value relevance of earnings and net assets is mostly non‐significant; however, interaction of these variables with ICD considerably increases the basic coefficients and the explanatory power of the models.Research limitations/implicationsPrior research on the value relevance of reported accounting numbers has not considered the incremental effect of textual ICD in annual reports. This study extends value relevance models by combining textual ICD with accounting numbers in an attempt to assess investors' valuation of firms.Practical implicationsFrom the findings, a case is made for corporate management (particularly in certain countries and industries) to integrate its accounting policy choices regarding good will and intangibles with its strategies for disclosure of broad intellectual capital information.Originality/valueFirst‐time evidence is provided that text‐based ICD is value‐relevant in capital markets and on its moderating effect for the value‐relevance of reported accounting numbers.

This study extends earlier research on corporate governance by examining whether the information‐usefulness of annual accounting earnings varies with the fraction of outside directors serving on the board and board size. Using panel data from New Zealand (NZ) firms for the financial years 1991–97, we find that earnings informativeness is negatively related to board size but is not related to the fraction of outside directors serving on the board. Our results are robust to controlling for various firm‐specific factors that are known to be associated with earnings informativeness.

We investigate the effect of related party transactions (RPTs) on value relevance and informativeness of accounting earnings for firms based in East Asia. Using a hand-collected sample of 398 listed companies comprising 1194 firm-year observations from Hong Kong, Malaysia, Singapore and Thailand, we find that firms engaging more extensively in RPTs have significantly lower value relevance and lower informativeness of earnings both in the current year and subsequent year than firms engaging less in RPTs. Furthermore, the results indicate that the types of RPTs affect value relevance and informativeness of earnings differently in that the effect of simple and loans RPTs are more negative than complex transactions. The extent of the negative effect of RPTs is lower in Hong Kong and Singapore where investor protection is higher compared to the other two economies. These findings are robust to controlling for firm-specific attributes, corporate governance, ownership structure, earnings quality, and a variety of sensitivity tests. These results are consistent with the conflict of interest view that RPTs compromise the quality of accounting earnings and this leads to the reduction in earnings and market value relationship for firms that engage in RPTs.